Jeremy Wright MP awarded the sum to the £4.5m project from the cultural development fund.
The finance will be used to create a new key gateway for Worcester, following the line of the Victorian arches from Foregate Street railway station to the Hive and the River Severn.
In total, eight of the arches will be refurbished and become dynamic work and creatives spaces, which will transform the area into a modern, 21st-century workplace for creative industries, and a cultural destination for tourists and local communities.
A festivals hub will be created in the arches, delivering festivals and cultural events across Worcester.
The funding bid was successfully arranged by Worcester Cultural Partnership, which will match it with a further £1.5m.
Photo credit: Node
The partnership – which is led by Worcester City Council – also includes the University of Worcester, Severn Arts, Network Rail, Worcestershire Arts Partnership and local businesses, including Burger Shop/A Rule of Tum, Method Roastery and the Hive.
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“Revitalising Worcester’s historic arches is a key part of our vision for the city centre, and I welcome this funding that will help us unite our city’s heritage and its vibrant future,” said councillor Marc Bayliss, leader at Worcester City Council (pictured top, third right).
“The arches will become a key skills training base for the city, a cultural hub, tourist destination and a new pedestrian key route.”
Laura Worsfold, chief executive at Severn Arts (left), added: “We are delighted that Worcester has been awarded this funding in recognition of our aspiration and ambition to become a centre for excellence in creative skills and to deliver a high-quality, innovative festivals programme that encourages new and existing audiences to participate in the arts.
“This will have a significant impact on transforming this part of the city into a vibrant new artistic quarter for everyone.”
Also pictured: Elaine Knight, arts director at Severn Arts, David Green, vice chancellor and chief executive at the University of Worcester, Anne Hannaford, chair of Worcestershire Arts Partnership, Tre Chislett, co-founder of Method Coffee Roasters and Rupert Davidson, joint director and proprietor at the Burger Shop.